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Caution: this document has been scanned and contains errors. TREATY ESTABLISHING THE EUROPEAN COAL AND STEEL COMMUNITY and ANNEXES I-Ill PARIS, 18 APRIL 1951 (DRAFT ENGLISH TEXT) TABLE OF CONTENTS TREATY Article PREAMBLE .. .. .. TITLE ONE-The European Coal and Steel Community 1 - 6 TITLE TWO-The Ins titutiors of the Community .. .. 7 - 45 Chapter I-The High Authority .. .. .. 8 - 19 Chapter lI-The Assembly .. .. .. 20 - 25 Chapter Ill-The Council .. .. .. .. .. 26 - 30 Chapter IV-The Court .. .. .. .. .. 31 - 45 TITLE THREE-Economic and social provisions: 46 - 75 Chapter I-General provisions .. .. 46 - 48 Chapter Il-Financial provisions .. .. .. 49 - 53 Chapter Ill-Investment and financial aid .. .. 54 - 56 Chapter IV-Production .. .. .. .. 57 - 59 Chapter V-Prices .. .. .. •. 60 - 64 Chapter VI-Agreements and concentrations.. 65 - 66 Chapter VII-Interference with conditions of competition 67 Chapter VIII-Wages and movement of workers .. 68 - 69 Chapter IX-Transport .. .. .. .. 70 Chapter X-Commercial policy .. .. .. 71 - 75 TITLE FOUR-General provisions .. .. .. .. 76 - 100 ANNEXES: Annex I-Definition of the expressions “coal” and “steel” •. Annex Il-Scrap .. Annex Ill-Special steels .. .. THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY, HIS ROYAL HIGHNESS THE PRINCE ROYAL OF BELGIUM, THE PRESIDENT OF THE FRENCH REPUBLIC, THE PRESIDENT OF THE ITALIAN REPUBLIC, HER ROYAL HIGHNESS THE GRAND DUCHESS OF LUXEMBOURG, HER MAJESTY THE QUEEN OF THE NETHERLANDS, CONSIDERING that world peace can be safeguarded only by creative efforts commensurate with the dangers that threaten it, CONVINCED that the contribution which an organised and vital Europe can make. civilisation is indispensable to the maintenance of peaceful relations, RECOGNISING that Europe can be built only through practical achievements which will first of all create real solidarity, and through the establishment of common bases for economic development, ANXIOUS to help, by expanding their basic production, to raise the standard of living and further the works of peace, RESOLVED to substitute for age-old rivalries the merging of their essential interests; to create, by establishing an economic community, the basis for a broader and deeper community among peoples longs divided by bloody conflicts; and to lay the foundations for institutions which will give direction to a destiny henceforward shared, HAVE DECIDED to create a European Coal and Steel Community and to this end have designated as their plenipotentiaries: THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY: Dr. Konrad ADENAUER, Chancellor and Minister for Foreign Affairs; HIS ROYAL HIGHNESS THE PRINCE ROYAL OF BELGIUM: Mr. Paul VAN ZEELAND, Minister for Foreign Affairs, Mr. Joseph MEURICE, Minister for Foreign Trade; THE PRESIDENT OF THE FRENCH REPUBLIC: Mr. Robert SC HUMAN, Minister for Foreign Affairs; THE PRESIDENT OF THE ITALIAN REPUBLIC: Mr. Carlo SFORZA, Minister for Foreign Affairs; HER ROYAL HIGHNESS THE GRAND DUCHESS OF LUXEMBOURG: Mr. Joseph BECH, Minister for Foreign Affairs; HER MAJESTY THE QUEEN OF THE NETHERLANDS: Mr. D.U. STIKKER, Minister for Foreign Affairs, Mr. J.R.M. VAN DEN BRINK, Minister for Economic Affairs; WHO, having exchanged their Full Powers, found in good and due form, HAVE AGREED as follows: TITLE ONE THE EUROPEAN COAL AND STEEL COMMUNITY Article 1 By this Treaty, the High Contracting Parties establish among themselves a EUROPEAN COAL AND STEEL COMMUNITY, founded upon a common market, common objectives and common institutions. Article 2 The European Coal and Steel Community shall have as its task to contribute, in harmony with the general economy of the Member States and through the establishment of a common market as provided in Article 4, to economic expansion, growth of employment and a ri standard of living in the Member States. The Community shall progressively bring about conditions which will of themselves ensure the most rational distribution of p at the highest possible level of productivity, while safeguarding continuity of employment and taking care not to provoke fundamental and persistent disturbances in the economies of Member States. Article 3 The institutions of the Community shall, within the limits of their respective powers, in the common interest: (a) ensure an orderly supply to the common market, taking into account the needs of third countries; (b) ensure that all comparably placed consumers in the common market have equal access to the sources of production; (c) ensure the establishment of the lbwest prices under such conditions that these prices do not result in higher prices charged by the same undertakings in other transactions or in a higher general price level at another time, while allowing necessary amortization and normal return on invested capital; (d) ensure the maintenance of conditions which wifl encourage undertakings to expand and improve their production potential and to promote a policy of using natural resources rationally and avoiding their unconsidered exhaustion 1(e) promote (Article 3 contd., page 2) (e) promote improved working conditions and an improved standard of living for the workers in each of the industries for which it is responsible, so as to make possible their harmonisation while the improvement is being maintained; (f) promote the growth of international trade and ensuze that equitable limits are observed in export pricing; (g) promote the orderly and modernisation of production, and the improvement of quality, with no protection against competing industries that is not justified by improper’ action on their part or in their favour. Article 4 The following are recognised as incompatible with the common market for coal and steel and shall accordingly be abolished and prohibited within the Community, as provided in this Treaty: (a) import and export duties, or charges having equivalent effect, and quantitative restrictions on the movement of products; (b) measures or practices which discriminate between producers between purchasers or between consumers, especially in prices and delivery terms or transport rates and conditions, and measures or practices which interfere with the purchaser’s free choice of supplier; (c) subsidies or aids granted by States, or special charges imposed by States, in any Lorm whatsoever; (d) restrictive practices which tend towards the sharing or exploiting of markets. Article 5 The Community shall carry out its task in accordance with. this Treaty, with a limited measure of intervention. To this end the Community shall: - provide guidance and assistance for the parties concerned, by obtaining information, organising consultations and laying down general objectives; - place financial resources at the disposal of undertakings for their investment and bear part of the cost of readaptation; - ensure the establishment, maintenance and observance of normal competitive conditions and exert direct influence upon production or upon the market only when circumstances so require; - publish the reasons for its actions and take the necessary measures to ensure the observance of the rules laid down in this Treaty. The institutions of the Community shall carry out these activities with a minimum of administrative• machinery and in close cooperation with the parties concerned. Article 6 The Community shall have legal personality. In international relations, the Community shall enjoy the legal capacity it requires to perform its functions and attain its objectives. In each of the Member States, the Community shall enjoy the most extensive legal capacity accorded to legal persons constituted in that State; it may, in particular, acquire or dispose of movable and immovable property and may be a party to legal proceedings. The Community shall be represented by its institutions, each within the limits of its powers. TITLE TWO THE INSTITUTIONS OF THE COMMUNITY Article 7 The institutions of the Community shall be: a High Authority, assisted by a Consultative Committee; a Common Assembly (hereinafter called the “Assembly”); a Special Council of Ministers (hereinafter called the “Codicil a Court of Justice (hereinafter called the “Court”). CHAPTER I-THE HIGH AUTHORITY* * 9 of the Treaty establishing a Single Council and a Single Commission of the European Communities (hereinafter called the “Merger Treaty”) reads as follows: “There shall be established a Commission of the European Communities (hereinafter called the Commission”). This Commission shall take the place of the High Authority of the European Coal and Steel Community, the Commission of the European Economic Community and the Commission of the European Atomic Energy Community. It shall exercise the powers and jurisdiction conferred on those institutions in accordance with the provisions of the Treaties establishing the European Coal and Steel Community, the European Economic Community and the European Atomic Energy Community, and of this Treaty Article 8 It shall be the duty of the High Authority to ensure that .the objectives set out in this Treaty are attained in accordance with the provisions thereof. Article 9* L Article is repealed by Article 19 of the Merger Treaty. The following Article of that Treaty replaces it: Article 10 1. The Commission shall consist of nine members, who shall be chosen on the grounds of their gerteralcompetence and whose independence is beyond doubt. The number of members of the Commission may be altered by the Council, acting unanimously. Only nationals of Member States may be members of the Commission. The Commission must include at least. one national of each of the Member States, but may not include more than two members having the nationality of the same State. /2. The *Article 9 of the ECSC Treaty read as follows: “The High Authority shall consist of nine members appointed for six years and chosen on the grounds of their general competence. Retiring members may be reappointed. The number of members of the High Authority may be reduced by decision of the Council, acting unanimously. Only nationals of Member States may be members of the High Authority. The High Authority may not include more than two members having the nationality of the same State. (Article 10 contd., page 2) 2. The members of the Commission shall, in the general interest of the Communities, be completely independent in the performance of their duties. In the performance of these duties, they shall neither seek nor take instructions from any Government or from any other body. They shall refrain from any action incompatible with their duties. Each Member State undertakes to respect this principle and not to seek to influence the members of the Commission in the performance of their tasks. /The (Article 9 contd.) The members of the High Authority shall, in the general interest of the Community, be completely independent in the performance of their duties. In the performance of these duties, they shall neither seek nor take instructions from any Government or from any other body. They shall refrain from any action incompatible with the supranational character of their duties. Each Member State undertakes to respect this ‘ supranational character and not to seek to influence the members of the High Authority in the performance of their tasks. The Members of the High Authority may not engage in any other occupation, whether gainful or not, nor may they acquire or hold, directly or indirectly, any interest in any business related to coal and steel during their term of office and for three years after ceasing to hold office.” (Article 10 contd., page 3) The members of the Commission may not, during their term of office, engage in any other occupation, whether gainful or not. When entering upon their duties they shall give a solemn undertaking that, both during and after their term of office, they will respect the obligations arising therefrom and in particular their duty to behave with integrity and discretion as regards the acceptance, after they have ceased to hold office, of certain appointments or benefits. In the event of any breach of these obligations, the Court of Justice may, on application by the Council or the Commission, rule that the member concerned be, according to the circumstances, either compulsorily retired in accordance with the provisions of Article 13 or deprived of his right to a pension or other benefits in its ste Article 10* 1 Article is repealed by Article 19 of the Merger Treaty. The following Article of that Treaty replaces it except for its last paragraph,which is replaced by Article 12 of the Merger Treaty**; Article 11 The members of the Commission shall be appointed by common accord of the Governments of the Member States. Their term of office shall be four years. It shall be renewable *Article 10 of the ECSC Treaty read as follows: “The Governments of the Member States shall appoint eight members of the High Authority by common accord. These eight members shall appoint the ninth member, who shall be duly elected if he receives at least five votes. Members so appointed shall remain in office for a period of six years from the date of the establishment of the common market. In the event of a vacancy occurring during the first period of six years for one of the reasons set out in Article 12, it shall ‘be filled, in accordance with the third paragraph of that Article, by common accord, of the Governments of the Member States. If, during the same period, the provisions of the third paragraph of Article 24 are applied, the members of the High Authority shall be replaced in accordance with the first paragraph of this Article. /When ** For text of Article 12 of the Merger Treaty see under Article 12 of the ECSC Treaty infra (Article 10 contd., page 2) When that period ends the entire High Authority shall be replaced, the nine members being appointed as follows: the Governments of the Member States, failing unanimous agreement, shall appoint eight members by a five-sixths majority; the ninth shall be co-opted as provided for in the first paragraph of this Article. The same procedure shall be followed should the entire High Authority have to be replaced in the circumstances envisaged in Article 24. One third of the members of the High Authority shall be replaced c ‘ary two years. Where the entire High Authority is replaced , the President of the Council shall ensure that the order of retirement is determined by lot forthwith. The normal replacements to be made at the end of each two-year period shall be made, alternately, in the following sequence: by appointment by the Governments of the Member States as provided for in the fifth paragraph of this Article, and by co-option in accordance with the first paragraph. In the event of vacancies occurring for one of the reasons set out in Article 12, they shall be filled, in accordance with the third paragraph of that Article, alternately, in the following sequence: by appointment by the Governments of the Member States as provided for in the fifth paragraph of this Article, and by co-option in accordance with the first paragraph. In all cases provided for in this Article in which an appointment is made by the Governments, deciding by a five-sixths majority, or by co-option, each\ Government shall have a right of veto subject to the following conditions: If a Government has exercised its right of veto with respect to two persons in the case of a single replacement, or to four persons in the case of replacement of the entire High Authority or of two- yearly replacement of members, any further exercise of that right on the occasion of the same replacement may be referred to the Court by another Government. The Court may declare the veto void if it considers that the right of veto has been abused. Save in the case of compulsory retirement under the provisions of the second paragraph of Article 12, members of the High Authority shall remain in office until they have been replaced.” Article 11* L Article is repealed by Article 19 of the Merger Treaty. The following Article of that Treaty replaces it: Article 14 The President and the three Vice- Presidents of the Commission shall be appointed from among its members for a term of two years in accordance with the same procedure as that laid down for the appointment of members of the Commission. Their appointments may be renewed. Save where the entire Commission is replaced, such appointments shall be made after the Commission has been consulted. In the event of retirement or death, the President and the Vice-Presidents shall be replaced for the remainder of their term of office in accordance with the preceding provision. *Article 11 of the ECSC Treaty read as follows: “The President and Vice-President of the High Authority shall be appointed from among its members for a term of two years in accordance with the same procedure as that laid down for the appointment of members of the High Authority by the Governments of the Member States. Their appointments may be renewed. Save where the entire High Authority is replaced, such appointments shall be made after the High Authority has been consulted.” Article 12* This Article is repealed by Article 19 of the Merger Treaty. The first two paragraphs of Article 12 and Article 13 of that Treaty replace it: Article 12 Apart from normal replacement, or death, the duties of a member of the Commission shall end when he resigns or is compulsorily retired. The vacancy thus caused shall be filled for the remainder of the member’s term of office. The Council acting unanimously, decide that such a vacancy need not be filled. Save in the case of compulsory retirement under the provisions of Article 13, members of the Commission shall remain in office until they have been replaced. /Article 13 *Article 12 of the ECSC Treaty read as follows: “Apart from normal replacement, the appointment of a member of the High Authority shall end on his death or retirement. Members who no longer fulfil the conditions required for the performance of their duties or who are guilty of serious misconduct may be compulsorily retired by the Court, on application by the High Authority or the Council. ‘In... (Article 12 contd., page 2) - Article 13 If any member of the Commission no longer fulfils the conditions required for the performance of his duties or if he has been guilty of serious misconduct, the Court of Justice may, on application by the Council or the Commission, compulsorily retire hixi7 (Article 12 contd.) In cases falling within this Article, the member in question shall be replaced for the remainder of his term of office in accordance with the provisions of Article 10. Replacement shall not be necessary if the remainder of the term of office is less than three months.” Article 13 L Article is repealed by Article 19 of the Merger Treaty. The following Article of that Treaty replaces it: Article 17 The Commission shall act by a majority of the number of members laid down in Article 10. A meeting of the Commission shall be valid only if the number of members laid down in its rules of procedure is present *Article 13 of the ECSC Treaty read as follows: “The High Authority shall act by a majority of its members. The rules of procedure shall determine the quorum. This quorum, however, must be greater than one half of the membership of the High Authority.” Article 14 In order to carry out the tasks assigned to it the High Authority shall, in accordance with the provisions of this Treaty, take decisions, make recommendations or deliver opinions. Decisions shall be binding in their entirety. Recommendations shall be binding as to the aims to be pursued but shall leave the choice of the appropriate methods for. these aims to those to whom the recommendations are addressed. Opinions shall have no binding force. In cases where the High Authority is empowered to take a decision, it may confine itself to making a recommendation. Article 15 Decisions, recommendations and opinions of the High Authority shall state the reasons on which they are based and shall refer to any opinions which were required to be obtained. Where decisions and recommendations are individual in character, they shall become binding upon being notified to the party concerned. In all other cases, they shall take effect by the mere fact of publication. The High Authority shall determine the manner in which this Article is to be implemented. Article 16 The High Authority shall make all appropriate administrative arrangements for the operation of its departments. It may set up study committees, including an economic study committee. under the general rules of organisation to be adopted by the High Authority, the President shall be responsible for the administration of the departments and for the impl of the acts of the High Authority *This paragraph is repealed by Article 19 of the Merger Treaty. Article 17* L Article is repealed by Article 19 of the Merger Treaty. The following Article of that Treaty replaces it: Article 18 The Commission shall publish annuity, not later than one month before the opening of the session of the Assembly, a general report on the activities of the Community *Article 17 of the ECSC Treaty read as follows: “The High Authority shall publish annually, not later than one month before the opening of the session of the Assembly, a general report on the activities and the administrative expenditure of the Community.” Article 18 A Consultative Committee shall be attached to the High Authority. It shall consist of not less than thirty and not more than fifty-one members and shall comprise equal numbers of producers, of workers, and of consumers and dealers. The members of the Consultative Committee shall be appointed by the Council. In the case of the producers and workers, the Council shall designate representative organisations among which it shall allocate the seats to be filled. Each organisation shall be required to draw up a list containing twice as many names as there are seats allotted to it. Appointments shall be made from this list. The members of the Consultative Committee shall be appointed in their personal capacity for two years. They shall not be bound by any mandate or instructions from the organisations which nominated them. The Consultative Committee shall elect its chairman and officers from among its members for a term of one year. The Committee shall adopt its rules of procedure. he allowances of members of the Consultative Committee shall be determined by the Council on a proposal from the High Authority *This paragraph is repealed by Article 19 of the Merger Treaty. Article 19 The High Authority may consult the Consultative Committee in all cases in which it considers this appropriate. It must do so whenever such consultation is prescribed by this Treaty. The High Authority shall submit to the Consultative Committee the general objectives and the programmes drawn up under Article 46 and shall keep the Committee informed of the broad lines of its action under Articles 54, 65 and 66. Should the High Authority consider it necessary, it may set the Consultative Committee a time limit for the submission of its opinion. The period allowed may not be less than ten days from the date on which the chairman receives notification to this effect. The Consultative Committee shall be convened by its chairman, either at the request of the High Authority or at the request of a majority of its members, for the purpose of discussing a specific question. The minutes of the proceedings shall be forwarded to the High Authority and to the Council at the same time as the opinions of the Committee. CHAPTER H-THE ASSEMBLY Article 20 The Assembly, which shall consist of representatives of the peoples of the States brought together in the Community, shall exercise the supervisory powers which are conferred upon it by this Treaty. Article 21* 1. The Assembly shall consist of delegates who shall be designated by the respective Parliaments from among their members in accordance with the procedure laid down by each Member State. 2. The number of these delegates shall be as follows: Germany .. .. .. 36 Belgium .. .. .. 14 France .. .. .. 36 Italy .. .. .. 36 Luxembourg .. .. .. 6 Netherlands .. .. .. 14 3. The Assembly shall draw up proposals for elections by direct universal suffrage in accordance with a uniform procedure in all Member States. The Council shall, acting unanimously, lay down the appropriate provisions, which it shall recommend to Member States for adoption in accordance with their respective constitutional requirements. *This is the text as amended by Article 2(2) of the Convention of 25 March 1957 on Certain Institutions Common to the European Communities. The original text read: t1 Assembly shall consist of delegates who shall be designated by the respective Parliaments once a year from among their members, or who shall be elected by direct universal suffrage, in accordance with the procedure laid down by each High Contracting Party. The number of these delegates shall be as follows: Germany .. .. .. 18 Belgium .. .. .. 10 France .. .. •. 18 Italy .. .. .. 18 Luxembourg .. .. .. 4 Netherlands .. .. .. 10 The representatives of the population of the Saar arc included in the number of delegates allotted to France.” Article 22 Tue Assembly shall hold an annual ‘session. EL’ shall meet:, without requiring Lo be convened, on The second Tuesday in March.* The Assembly may be convened in extraordinary session at the request: of the Council in order to deliver an opinion on such questions as may be put to it by the Council. It may also meet in ext session at the request of a majority of its members or of the High Authority. *This is the text as amended by Article 27(1) of the Merger Treaty. The original text read: “The Assembly shall hold an annual session. It shall meet, without requiring to be convened, on the second Tuesday in May. The session may not last beyond the end of the current financial year.” Article 23 The Assembly shall elect us I t and its officers from among its members. Members of the high Authority may attend all meetings. The President of the High Authority or such of its members as it may designate shall be heard at their request. The High Authority shall reply orally or in writing to questions put to it by the Assembly or by its members. The members of the Council may attend all meetings and shall be heard at their request. Article 24 The Assembly shall discuss in open session the general report submitted to it by the High Authority. If a motion of censure on the activities of the High Authority is tabled before it, the Assembly shall not vote thereon until at least three days after the motion has been tabled and only by open vote.* If the motion of censure is carried by a two- thirds majority of the votes -cast, representing a majority of the Members of the Assembly, the members of the Higher Authority shall resign as a body. They shall continue to deal with current business until they are replaced in accordance with Article 10. *This is the text as amended by Article 27(2) of the Merger Treaty. The original text read: ‘If a motion of censure on the report is tabled before it, the Assembly shall not vote thereon until at least three days after the motion has been tabled and only by open vote.” Article 25 The Assembly shall adopt its rules of procedure, acting by a majority of its members. The proceedings of the Assembly shall be published in the manner laid down in its rules of procedure. CHAPTER Ill-THE COUNCIL* * 1 of the Merger Treaty reads as follows: “There shall be established a Council of the European Communities (hereinafter called the “Council”). This Council shall take the place of the Special Council of Ministers of the European Coal and Steel Community, the Council of the European Economic Community and the Council of the European Atomic Energy Community. It shall exercise the powers and jurisdiction conferred on those institutions in accordance with “ the provisions of the Treaties establishing the European Coal and Steel Community, the European Economic Community and the European Atomic Energy Community, and of this Treat Article 26 The Council shall exercise its powers in the cases provided for and in the manner set out in this Treaty, in particular in order to harmonise the action of the High Authority and that of the Governments, which are responsible for the general economic policies of their countries. To this end, the Council and the High Authority shall exchange information and consult each other. The Council may request the High Authority to examine any proposals or measures which the Council may consider appropriate or necessary for the attainment of the common objectives. Article 27* L Article is repealed by Article 7 of the Merger Treaty. The following Article of that Treaty replaces it: Article 2 The Council shall consist of representatives of the Member States. Each Government shall delegate to it one of its members. The office of President shall be held for a term of six months by each member of the Council in turn, in the following order of Member States: Belgium, Germany, France, Italy, Luxembourg, Netherland *Article 27 of the ECSC Treaty read as follows: “The Council shall consist of representatives of the Member States. Each State shall delegate to it one of the members of its Government. The office of President shall be held for a term of three months by each member of the Council in turn, in the alphabetical order of the Member States.” Article 28 The Council shall meet when convened by its President on his own initiative or at the request of one of its members or of the Commission.* When the Council is consulted by the High Authority, it shall consider the matter without necessarily taking a vote. The minutes of its proceedings shall be forwarded to the High Authority. Wherever this Treaty requires the assent of the Council, that assent shall be considered to have been given if the proposal submitted by the High Authority receives the approval: — of art absolute majority of the representatives of the Member States, including the vote of the representative of one of the States which each produce at least one sixth of the total value of the coal and steel output of the Community; or — in the event of an equal division of votes and if the High Authority maintains its proposal after a second discussion, of the representatives of the two Member States which each produce at least one sixth of the total value of the coal and steel output of the Corn unity.** /Wherever *This is the text of Article 3 of the Merger Treaty. The original text of the first paragraph of Article 28 of the ECSC Treaty, repealed by Article 7 of the Merger Treaty, read as follows: “The Council shall meet when convened by its President at the request of a Member State or of the High Authority.” **This is the text as amended by Article 2 of the Treaty amending the ECSC Treaty of 27 October 1956, which replaces the original words ‘twenty per cent’ by the words ‘one sixth’. (Article 28 contd., page 2) Wherever this Treaty requires a unanimous decision or unanimous assent, such decision or assent shall be duly given if all the members of the Council vote in favour. However, for the purposes of applying Articles 21, 32, 32a, 78d and 78f of this Treaty, and Article 16, the third paragraph of Article 20, the fifth paragraph of Article 28 and Article 44 of the Protocol on the Statute of the Court of Justice, abstention by members present in person or represented shall not prevent the adoption by the Council of acts which require unanimity.* Decisions of the Council, other than those which require a qualified majority or unanimity, shall be taken by a vote of the majority of its members; this majority shall be considered to be attained if it represents an absolute majority of the representatives of the Member States, including the vote of the representative of one of the States which each produce at least one sixth** of the total value of the coal and steel output of the Community. However, for the purposes of applying those provisions of Articles 78, 78b and 78d of this Treaty which require a qualified majority, the votes of the members of the Council shall be weighted as ollo*s: Belgium 2, Germany 4, France 4, Italy 4, Luxembourg 1, Netherlands 2. For their adoption, acts shall require at least twelve votes in favour, cast by not less than four members.*J *The last sentence of this paragraph is added by Article 8(2)(a) of the Merger Treaty. **As amended by Article 2 of the Treaty of 27 October 1956 (see footnote on preceding page). ***The last two sentences of this paragraph are added by Article 8(2)(b) of the Merger Treaty. (Article 28 contd., page 3) Where a vote is taken, any member of the Council may also act on behalf of not more than one other Member. The Council shall deal with the Member States through its President. The acts of the Council shall be published in such a manner as it may decide. Article 29* This Article is repealed by Article 7 of the Merger Treaty. The following Article of that Treaty replaces it: Article (i The Council shall, acting by a qualified majority, determine the salaries, allowances and pensions of the President and members of the Commission, and of the President, Judges, Advocates-General and Registrar of the Court of Justice. It shall also, again by a qualified majority, determine any payment to be made instead of remuneratioij7 *Article 29 of the ECSC Treaty read as follows: The Council shall determine the salaries, allowances and pensions of the President and members of the High Authority, and of the President, Judges, Advocates-General and Registrar of the Court. Article 30* his Article is repealed by Article 7 of the Merger Treaty. The following Article of that Treaty replaces it: Article 5 The Council shall adopt its rules of procedure * 30 of the ECSC Treaty read as follows: “The Council shall adopt its rules of procedure. CHAPTER IV-TIIE COURT Article 31 The Court shall ensure that in the interpretation and application of this Treaty, and of rules laid down for the implementation thereof, the law is observed. Article 32* The Court shall consist of seven Judges. The Court shall sit in plenary session. It may, however, form chambers, each consisting of three or five Judges, either to undertake certain preparatory inquiries or to adjudicate on particular categories of cases in accordance with rules laid down for these purposes. Whenever the Court hears cases brought before it by a Member State or by one of the institutions of the Community or has to give preliminary rulings on questions submitted to it pursuant to Article 41, it shall sit in plenary session. Should the Court so request, the Council may, acting unanimously, increase the number of Judges and make the necessary adjustments to the second and third paragraphs of this Article and to the second paragraph of Article 32b. *This is the text as amended by Article 4(2) of the Convention of 25 March 1957 on Certain Institutions Common to the European Communities. The original Article 32 read as follows: “The Court shall consist of seven Judges appointed by common accord of the Governments of the Member States for a term of six years from persons whose independence and competence are beyond doubt. k Every three years there shall be a partial replacement, three and four members being replaced alternately. The three members whose terms of office are to expire at the end of the first three years shall be chosen by lot. Retiring Judges shall be eligible for reappointment. The number of Judges may be increased by the Council, acting unanimously on a proposal from the Court. The Judges shall elect the President of the Court from among their number for a term of three years.” Article 32a* The Court shall he assisted by Iwo Advocates General. It shall be the duty of the Advocate-General, acting with complete impartiality and independence, to make, in open court, reasoned submissions on cases brought before the Court, in order to assist the Court in the performance of the task assigned to it in Article 31. Should the Court so request, the Council may, acting unanimously, increase the number of Advocates- General and make the necessary adjustments to the third paragraph of Article 32b. *This Article was added by Article 4(2) of the Convention of 25 March 1957 on Certain Institutions Common to the European Communities. Article 32b* The Judges and Advocates-General shall be chosen from persons whose independence is beyond doubt and who possess the qualifications required for appointment to the highest judicial offices in their respective countries or who are jurisconsults of recognised competence; They shall be appointed by common accord of the Governments of the Member States for a term of six years. Every three years there shall be a partial replacement of the Judges, they and four Judges being replaced alternately. The three Judges whose terms of office are to expire at the end of the first three years shall be chosen by lot. Every three years there shall be a partial replacement of the Advocates-General. The Advocate- General whose term of office is to expire at the end of the first three years shall be chosen by lot. Retiring Judges and Advocates-General shall be eligible for reappointment. The Judges shall elect the President of the Court from among their number for a term of three years. He may be re-elected. *See footnote to Article 32a Article 32c* The Court shall appoint the Registrar and lay down The rules governing his service. *See footnote to Article 32a Article 33 The Court shall have jurisdiction in actions brought by a Member State or by the Council to have decisions or recommendations of the High Authority declared void on grounds of lack of competence, infringement of an essential procedural requirement, infringement of this Treaty or of any rule of law relating to its application, or misuse of powers. The Court may not, however, examine the evaluation of the situation, resulting from economic facts or circumstances, in the light of which the High Authority took its decisions or made its recommendations, save where the High Authority is. alleged to have misused its powers or to have manifestly failed to observe the provisions of this Treaty or any rule of law relating to its application. Undertakings or the associations referred to in Article 48 may, under the same conditions, institute proceedings against decisions or recommendations concerning them which are individual in character or against general decisions or recommendations which they consider to involve a misuse of powers affecting them. /The (Article 33 contd., page 2) The proceedings provided for in the first two paragraphs of this Article shall be instituted within one month of the notification or publication, as the case may be, of the decision or recommendation. Article 34 If the Court: declares a decision or recommendation void, it shall refer the matter back to the High Authority. The High Authority shall take the necessary steps to comply with the judgment. If direct and special harm is suffered by an undertaking or group of undertakings by reason of a decision or recommendation held by the Court to involve a fault of such a nature as to render the Community liable, the High Authority shall, using the powers conferred upon it by this Treaty, Lake steps Lo equitable redress for the harm resulting directly from the decision or recommendation declared void and, where necessary, pay appropriate damages. If the High Authority fails to take within a reasonable time the necessary steps to comply with the judgment, proceedings for damages may be instituted before the Court. Article 35 Wherever the High Authority is required by this Treaty, or by rules laid down for the implementation thereof, to take a decision or make a recommendation and fails to fulfil this obligation, it shall be for States, the Council, undertakings or associations, as the case may be, to raise the matter with the High Authority. The same shall apply if the High Authority, where empowered by this Treaty, or by rules laid down for the implementation the to take a decision or make a recommendation, abstains from doing so and such abstention constitutes a misuse of powers. If at the end of two months the High Authority has not taken any decision or made any recommendation, proceedings may be instituted before the Court within one month against the implied decision of refusal which is to be inferred from the silence of the High Authority on the matter. Article 36 Before imposing a pecuniary sanction or order ing a periodic pena1ty payment as provided for in this Treaty, the High Authority must give the party concerned the opportunity to submit its comments. The CourL shall have unlimited jurisdiction in appeals against pecuniary sanctions and periodic penalty payments imposed under this Treaty. In support of its appeal, a party may, under the same conditions as in the paragraph of Article 33 of this Treaty, contest the legality of the decision or recommendation which that party is alleged not to have observed. Article 37 If a Member State considers that in a given case action or failure to act on the part of the High Authority is of such a nature as to provoke fundamental and persistent disturbances in its economy, it may raise the matter with the High Authority. The High Authority, after consulting the Council, shall, if there are grounds for so doing, recognise the existence of such a situation and decide on the measures to be taken t end it, in accordance with the provisions of this Treaty, while at the same time safeguarding the essential interests of the Community. When proceedings are instituted in the Court under this Article against such a decision or against an express or implied decision refusing to recognise the existence of the situation referred to above, it shall be for the Court to determine whether it is well founded. If the Court declares the decision void, the High Authority shall, within the terms of the judg— ment of the Court, decide on the measures to be taken for the purposes indicated in the second para graph of this Article. Article 38 The Court may, On appli’at Ion by a Mernbcr State or the IIi Authority, declare an act of Lhe Assembly or of the Council to be void. Application shall be made within one month of the publication of the act of the Assembly or the notification of the act of the Council to the Member States or to the High Authority. The only grounds for such application shall be lack of competence or infringement of an essential procedural requirement. Article 39 Actions brought before the Court shall not have suspensory effect. The Court may, however, if it considers that circumstances so require, order that application of the contested decision or recommendation be suspended. The Court may prescribe any other necessary interim measures. Article 40 Without prejudice to the first paragraph of Article 34, the Court shall have jurisdiction to order pecuniary reparation from the Community, on application by the injured party, to make good any injury caused in carrying out this Treaty by a wrongful act or omission on the part of the Community in the performance of its functions. The Court shall also have jurisdiction to order the Community to make good any injury caused by a personal wrong by a servan of the Community in the performance of his duties. The personal liability of its servants towards the Community shall be governed by the provisions laid down ,in their Staff Regulations or the Conditions of Employment applicable to them.* All other disputes between the Community and per other than its servants to which the provisions of this Treaty or the rules laid down for the implementation thereof do not açply shall be brought before national courts or tribunals. * . . The text of this paragraph is as amended by Article 26 of the Merger Treaty. The original text read: “The Court shall also have jurisdiction to order a servant of the Community to make good any injury caused by a personal wrong on his part in the performance of his duties. If the injured party is unable to obtain redress from the servant, the Court may award appropriate damages against the Community.” Article 41 The Court shall have sole jurisdiction to give preliminary rulings on the validity of acts of the High Authority and of the Council where such validity is in issue in proceedings brought before a national court or tribunal. ArL.icle 42 The Court shall have jurisdiction to give judg rnent pursuant to any arbitration clause contained in a contract concluded by or on behalf of the Community, whether that contract be governed by public or private law. Article 43 The Court shall have jurisdiction in any other case provided for by a provision supplementing this Treaty. It may also rule in all cases which relate to the subject matter of this Treaty where jurisdic tion is conferred upon it by the law of a Member State. Article 44 The judgments of the Court shall be enforce able in the territory of Member States under the conditions laid down in Article 92. Article 45 The Statute of the Court is laid down in a Protocol annexed to this Treaty. TITLE THREE ECONOMIC AND SOCIAL PROVISIONS CHAPTER I - GENERAL PROVISIONS Article 46 The High Authority may at any time consult Governments, the various parties concerned (under takings, workers, consumers and dealers) and their associations, and any experts. Undertakings, workers, consumers and dealers, and their associations, sball be entitled to present any suggestions or comments to the High Authority on questions affecting them. To provide guidance, in line with the tasks assigned to the Community, on the course of action to be followed by all concerned, and to determine its own course of action, in accordance with the provisions of this Treaty, the High Authority shall, in consultation as provided above: (1) conduct a continuous study of market and price trends; (2) periodically draw up programmes indicating foreseeable developments in production, consumption, exports and imports; k (Article 46 contd., page 2) (3) periodically lay down general objectives for modernisation, long-term planning of manufacture and expansion of productive capacity; (4) take part, at the request of the Governments concerned, in studying the possibilities for re-employing, in existing industries or through the creation of new activities, workers made redundant by market developments or technical changes; (5) obtain the information it requires to assess ihe possibilities for improving working conditions and living standards for workers in the industries within its province, and the threats to those standards. The High Authority shall publish the general object ives and the programmes after submitting them to the Consultative Committee. It may publish the studies and information mentioned above. Article 47 The High Authority may obtain the information it requires to carry out its tasks. It may have any necessary checks made. The Fligh Authority must not disclose informa tion of the kind covered by the obligation of professional secrecy, in particular information about undertakings, their business relations or their cost components. Subject to this reservation, it shall publish such data as could be useful to Governments or to any other parties co1 The High Authority may impose fines or periodic penalty payments on undertakings which evade their obligations under decisions taken in pursuance of this Article or which knowingly furnish false informa tion. The maximum amount of such fines shall be 1 per cent of the annual turnover, and the maximum amount of such penalty payments shall be 5 per cent of the average daily turnover for each day’s delay. Any breach of professional secrecy by the High Authority which has caused damage to an undertaking may be the subject of an action for compensation before the Court, as provided in Article 40. Article 48 The right of undertakings to form associations shall not be affected by this Treaty. Membership of such associations must be voluntary. Associations may engage in any activity which is not contrary to the provisions of this Treaty or to the decisions or recommendations of the High Authority. Where this Treaty requires the Consultative Committee to be consulted, any association shall have the right to submit to the High Authority, within such time as the latter may set, the comments of its members on the proposed course of action. To obtain information which it requires, or to facilitate the performance of the tasks entrusted to it, the High Authority shall normally call upon producers associations on condition either that they provide for accredited representatives of workers and consumers to sit on their governing bodies or on advisory committees attached to them, or that they make satisfactory provision in some other way in their organisation for the interests of workers and consumers to be voiced. (Article 48, contd., page 2) The associations referred to in the preceding paragr shall furnish the High Authority with such informalion on their activities as it may consider necessary. The comments referred to in the second paragraph of this Article and the irtforma tion furnished in pursuance of this paragraph shall also be forwarded by those associations to the Government concerned. CHAPTER II - FINANCIAL PROVISIONS Article 49 The High Authority is empowered to procure the funds it requires to carry out its tasks: - by imposing levies on the production of coal and steel; - by contracting loans. It n receive gifts. Article 50 1. The levies are intended to cover: - the administrative expenditure provided for in Article 78; - the non-repayable aid towards readaptation provided for in Article 56; - in the case of the financing arrangements • provided for in Articles 54 and 56, and after recourse to the reserve fund, any portion of the amounts required for servicing loans raised by the High Authority which may not be covered by receipts from the servicing of loans granted by it, and any payments to be made under guarantees granted by the High Authority on loans contracted directly by undertakings; - expenditure on the promotion of technical and economic research as provided for in Article 55(2). 2. The levies shall be assessed annually on the various products according to their average value; the rate thereof shall not, however, exceed 1 per cent unless previously authorised by the Council, acting by a two- thirds majority. The mode of assessment and o1lea tion shall be determined by a general decision of the High Authority taken aEter consulting the Council; cumulative imposition shall be avoided as far as possible. (Article 50 contd., page 2) 3. The High Authority may impose upon undertakings which do not comply with decisions taken by it under this Article surcharges of not more than 5 per cent for each quarter’s delay. Article 51 1. The High Authority may not use the funds obtained by borrowing except to grant loans. The issue of loans by the High Authority on the markets of Member States shall be subject to the rules and regulations in force on these markets. If the High Authority considers the guarantee of Member States necessary in order to contract certain loans, it shall approach the Government or Governments concerned after consulting the Council; no State shall be obliged to give its guarantee. 2. The High Authority may, as provided in Article 54, guarantee loans granted direct to under takings by third parties. 3. The High Authority may so determine its conditions for loans or guarantees as to enable a reserve fund to be built up for the sole purpose of reducing whatever amounts may have to be paid out of the levies in accordance with the third subparagraph of Article 50(1); the sums thus accumulated must not, however, be used for any form of lending to undertakings. 4. The High Authority shall not itself engag in the banking operations which its financial tasks entail. Article 52 Member States shall make all appropriate arrangements to enable transfers of funds derived from the levies, from pecuniary sanctions and periodic penalty payments and from the reserve fund to be effected within the territories referred to in the first paragraph of Article 79 in accordance with the procedure for commercial payments, to the extent necessary to make it possible for them to be used for the purposes intended by this Treaty. The procedure for effecting transfers, both between Member States and to third countries, arising out of other financial operations carried out or guaranteed by the High Authority, shall be determined by agreement between the High Authority and the Member States concerned or the appropriate agencies; there shall, however, be no obligation upon any Member State which applies exchange controls to permit transfers where it has not expressly under taken to do so. Article 53 Without prejudice to the provisions of Article 58 or of Chapter V of Title III, the High Authority may: (a) after consulting the Consultative Committee and the Council, authorise the making, on conditions which it shall determine and under its supervision, of any financial arrangements common to several undertakings which it recognises to be necessary for the performance of the tasks set otit in Article 3 and compatible with this Treaty, and in particular with Article 65; (b) with the unanimous assent of the Council, itself make any financial arrangements serving the same purposes. Similar arrangements made or maintained by Member States shall be notified to the High Authority, which, after consulting the Consultative Committee and the Council, shall make the necessary recornmenda tions to the States concerned where such arrangements are inconsistent, in whole or in part, with the application of this Treaty. CHAFFER III - INVESTMENT AND FINANCIAL AID Article 54 The High Authority may facilitate the carrying out of investment programmes by granting loans to undertakings or by guaranteeing other loans which they may contract. With the unanimous assent of the Council, the High Authority may by the same means assist the financing of works and installations which contribute directly and primarily to increasing the production, reducing the production coits or facilitating the marketing of products within its jurisdiction. In order to encourage coordinated development of investment, the High Authority may, in accordance with Article 47, require undertakings to inform it of individual programmes in advance, either by a special request addressed to the undertaking concerned or by a decision stating what kind and scale of programme must be communicated. The High Authority may, after giving the parties concerned full opportunity to submit their comments, deliver a reasoned opinion on such programmes within the framework of the general objectives provide fox in Article 46. If application is made by the undertaking (Article 54 contd., page 2) concerned, the High Authority must deliver a reasoned opinion. The High Authority shall notify the opinion to the undertaking concerned and shall bring the opinion to the attention of its Government. Lists of such opinions shall be published. If the High Authority finds that the financing of a programme or the operation of the installations therein planned would involve subsidies, aids, protec tion or discrimination co to this Treaty, the adverse opinion delivered by it on these grounds shall have the force of a decision within the mean ing of Article 14 and the effect of prohibiting the undertaking concerned from drawing on resources other than its own funds to carry out the programme. The High Authority may impose on undertakings which disregard the prohibition referred to in the preceding paragraph fines not exceeding the amounts improperly devoted to carrying out the programme in question. Article 55 1. The High Authority shall promote technical and economic research relating to the production and increased use of coal and steel and to occupational safety in the coal and steel industries. To this end it shall organise all appropriate contacts among existing research bodies. 2. After consulting the Consultative Committee, the High Authority may initiate and facilitate such research: (a) by inducing joint financing by the under takings concerned; or (b) by allotting for that purpose any Lunds received as gifts; or (c) with the assent of the Council, by allotting for that purpose funds derived from the levies provided for in Article 50; the limit laid down in paragraph 2 of that Article must not, however, be exceeded. The results of research financed as provided in subparagraphs (b) and (c) shall be made available to all concerned in the Community. 3. The High Authority shall deliver any opinio which serve to make technical improvements more widely known, particularly with regard to the exchange of patents and the granting of licences for using them. Article 56* 1. If the introduction, within the framework of the general objectives of the High Authority, of new technical processes or equipment should lead to an exceptionally large reduction in labour require ments in the coal or the steel industry, making it particularly difficult in one or more areas to re-employ redundant workers, the High Authority, on application by the Governments concerned: (a) shall obtain the opinion of the Consultative Committee; -. (b) may facilitate, in the manner laid down in Article 54, either in the industries within its jurisdiction or, with the assent of the Council, in any other industry, the financing of such programmes as it may approve for the creation of new and economically sound activities capable of reabsorbing the redundant workers into productive employment; (c) shall provide non-repayable aid towards: - the payment of tideover allowances to workers; - the payment of resettlement allowances to workers; *This is the text as amended on a proposal from the High Authority and the Special Council of Ministers in accordance with the procedure laid down in the third and fourth para graphs of Article 95 (see OJ 33, 16 May 1960, p. 781/60). The original Article 56 contained only paragraph 1 of the present text. (Article 56 contd., page 2) - the firLancing of vocational retraining for workers having to change their employment. The High Authority shall make the provision of non-repayable aid conditional upon payment by the State concerned of a special contribution of not less than the amount of that aid, unless an exception is authorised by the Council, acting by a two-thirds majority. 2. If fundamental changes, not directly connected with the establishment of the common market, in market conditions for the coal or the steel industry should compel some undertakings permanently to discontinue, curtail or change their activities, the High Authority, on application by the Governments concerned: (a) may facilitate, in the manner laid down in Article 54, either in the industries within its jurisdiction or, with the assent of the Council, in any other industry, the financing of such programmes as it may approve for the creation of new and economically sound activities or for the conversion of existing undertakings ‘ capable of reabsorbing the redundant workers into productive employment; (Article 56 contd., page 3) (b) may provide non-repayable aid towards: - the payment of tideover allowances to workers; - -the payment of allowances to undertakings to enable them to continue paying such of their workers as may have to be temporarily laid off as a result of the undertakings’ change of activity; - the payment of reset:tlement allowances to workers; - the financing of vocational retraining for workers hiving to change their employment. The High Authority shall make the provision of non-repayable aid conditional upon payment by the State concerned of a special contribution of not less than the amount of that aid, unless an exception is authorised by the Council; acting by a two-thirds majority. CHAPTER IV - PRODUCTION Article 57 In the sphere of production, the High Authority shall give preference to the indirect means of action at its disposal, such as: - cooperation with Governments to regularise or influence general consumption, particularly that of the public services; intervention in regard to prices and commercial policy as provided for in this Treaty. - Article 58 1. In the event of a decline in demand, if the High Authority considers that the Community is confronted with a period of manifest crisis and that the rr of action provided for in Article 57 are not sufficient to deal with this, it shall, after consult ing the Consultative Committee and with the assent of the Council, establish a system of production quotas, accompanied to the necessary extent by the measures provided for in Article 74. If the High Authorit fails to act, a Member State may bring the matter before the Council, which may, acting unanimously, require the High Authority to establish a system of quotas. 2. The High Authority shall, on the basis of studies made jointly with undertakings and associations of undertakings, determine the quotas on an equitable basis, taking account of the principles set out in Articles 2, 3 and 4. It rray in particular regulate the level of activity of undertakings by appropriate levies on tonnages exceeding a reference level set by a general decision. (Article 58 contd., page 2) The funds thus obtained shall be used to support undertakings whose rate of production has fallen below that envisaged, in order, in particular, to maintain employment in these undertakings as far as possible. 3. The system of quotas shall be ended on a proposal made to the Council by the High Authority after consulting the Consultative Committee, or by the Government of a Member State, unless the Council decides otherwise, acting unanimously if the proposal emanates from the High Authority or by a simple majority if the proposal emanates from a Government. An announcement on the ending of the quota system shall be made by the High Authority. 4. The High Authority may impose upon undertakings which do not comply with decisions taken by it under this Article fines not exceeding the value of the tonnages produced in disregard thereof. Article 59 1. If, after consulting the Consultative Committee, the High Authority Linds that the Community is confronted with a serious shortage of any or all of the products within its jurisdiction, and that the means of action provided for in Article 57 are not sufficient to deal with this, it shall bring the situa tion to the attention of the Council and shall, unless the Council, acting unanimously, decides otherwise, propose to it the necessary measures. If the High Authority fails to act, a Member State may bring the matter before the Council,which may, acting unanimously, recognise that the situation in question does in fact exist. 2. The Council shall, acting unanimously on a proposal from and in consultation with the High Authority, establish consumption priorities and determine the allocation of the coal and steel resources of the Community to the industries within its jurisdiction, to export and to other sectors of consumption. On the basis of the consumption priorities thus established, the High Authority, shall, after consulting the undertakings concerned, draw up the produc \. programmes with which the undertakings shall be required to comply. (Article 59 contd., page 2) 3. If the Council does not reach a unanimous decision on the measures referrred to in paragraph 2, the High Authority shall itself allocate the resources of the Community among the Member States on the basis of consumption and exports, irrespective of the place of production. Within each of the Member States allocation of the resources assigned by the High Authority shall be carried out on the responsibility of the Government, provided that the deliveries scheduled to be supplied to other Member States are not affected and that the High Authority is consulted concerning the portions to be allotted to export and to the operation of the coal and steel industries. If the portion allotted by a Government to export is less than the amount taken as the basis for calculating the total tonnage to be assigned to the Member State concerned, the High Authority shall, to the necessary extent, at the next allocation, redivide among the Member States the resources thus made available for consumption. If the portion allotted by a Government to the operation of the coal and steel industries is similarly (Article 59 contd., page 3) less and the result is a decrease in Community production of one of these, the tonnage assigned to the Member State concerned shall, at the next allocation, be reduced by the amount of the decrease in production so caused. 4. In all cases, the High Authority shall be responsible for allocating equitably among undertak ings the quantities assigned to the industries within its jurisdiction, on the basis of studies made jointly with undertakings and associations of undertakings. 5. Should the situation provided for in paragraph 1 of this Article arise, the High Authority may, in accordance with Article 57, after consulting the Consultative Committee and with the assent of the Council, decide that restrictions on exports to third countries shall be imposed in all the Member States, or, if the High Authority fails to act, the Council may, acting unanimously, so decide on a proposal from a Government. 6. The High Authority may end the arrangements made under this Article after consulting the Consultative Committee and the Council. It shall not do so if the Council unanimously dissents. (Article 59 contd., page 4) If the High Authority fails to act, the Council may, acting unanimously, itself end the arrangements. 7. The High Authority may impose upon undertakings which do not comply with decisions taken under this Article fines not exceeding twice the value of prescribed production or deliveries either not effected or diverted from their proper use. CHAPTER V - PRICES Article 60 1. Pricing practices contrary to Articles 2, 3 and 4 shall be prohibited, in particular: - unfair competitive practices, especially purely temporary or purely local price reductions tending towards the acquisition of a monopoly position within the common market; - discriminatory practices involving, within the common rnai±et, the application by a seller of dissimilar conditions to comparable transactions, especially on grounds of the nationality of the buyer. The High Authority may define the practices covered by this prohibition by decisions taken after consulting the Consultative Committee and the Council. 2. For these purposes: (a) the price lists and conditions of sale applied by undertakings within the common market must be made public to the extent and in the manner prescribed by the High Authority after consulting the Consultative Comrt ‘ \ (Article 60 contd., page 2) - If the High Authority finds that an under taking’s choice of point on which it bases its price lists is abnormal and in particular makes it possible to evade the provisions of subparagraph (b), it shall make appropriate recommendations to that undertaking; (b) the methods of quotation used must not have the effect that prices charged by an undertaking in the common market, when reduced to their equivalent at the point chosen for its price lists, result in: - increases over the price shown in the price list in question for a comparable transaction; or - reductions below that price the amount of which exceeds either: - the extent enabling the quotation to be aligned on the price list, based on another point which secures the buyer the most advantageous delivered terms; or - the limits fixed, by decision of the High Authority after the Consultative Committee has delivered its opii\ion,\ for each category of product, with due regard, where appropriate, for the origin and destination of products. (Article 60 contd., page 3) Such decisions shall be taken when found necessary to avoid disturbances in the whole or any part of the common market or disequiibria resulting from a difference between the methods of quotation used for a product and for materials involved in making it. Such decisions shall not preclude undertakings from aligning their quotations on those of undertakings outside the Community, on condition that the transactions are notified to th High Authority, which may, in the event of abuse, restrict or abrogate the right of the undertakings concerned to take advantage of this exception. Article 61 On the basis of studies made jointly with under takings and associations of undertakings, in accordance with the first paragraph of Article 4S and the third paragraph of Article 48, and after consulting the Consultative Committee and the Council as to the advisability of so doing and the price level to be so determined, the High Authority may, for one or more of the products within its jurisdiction: (a) fix maximum prices within the common market, if it finds that such a decision is necessary to aitain the objectives set out in Article 3, and particularly in para graph (c) thereof; (b) fix minimum prices within the common market, if it finds that a manifest crisis exists or is imminent and that such a decision is necessary to attain the object ives set out in Article 3; (c) after consulting the associations to which the undertakings concerned belong, or the undertakings themselves, £ ix, by methods appropriate to the nature of the export markets, minimum or maximum export \ prices, if such an arrangement can be (Art:icle 61 contd., page 2) eEf supervised and is necessary both in view of the dangers to the undertakings resulting from the state of the market and in order to secure the acceptance in international economic relations of the objective set out in Article 3(f); any fixing of minimum prices shall be without prejudice to the measures provided for in the last subparagraph of Article 60(2). In fixing prices, the High Authority shall take into account the need to ensure—that the coal and steel industries and the consumer industries remain competitive, in accordance with the principles laid down in Article 3(c). If in these circumstances the High Authority fails to act, the Government of a Member State may bring the matter before the Council, which may, acting unanimously, call upon the High Authority to fix such maximum or minimum prices. Article 62 If the High Authority considers this the most appropriate, way of preventing coal from being priced at the level of the production costs of the mines which have the highest costs but which it is recognised should be temporarily maintained in service in order that the tasks laid down in Article 3 may be performed, it may, after consulting the Consultative Committee, authorise equalisation payments: - between undertakings in the same coalfield to which the same price lists apply; - after consulting the Council, between under takings in different coalfields. These equalisation payments may, moreover, be instituted as provided in Article 53. Article 63 1. If the High Authority finds that discrimination is being systematically practised by purchasers, in particular under provisions governing contracts entered into by bodies dependent on a public authority, it shall make appropriate recommendations to the Governments concerned. 2. Where the High Authority considers it necessary, it may decide that: (a) undertakings must frame their conditions of sale in such a way that their customers and commission agents acting on their behalf shall be under an obligation to comply with the rules made by the High Authority in application of this Chapter; (b) undertakings shall be held responsible for infringements of this obligation by their direct agents or by commission agents acting on their behalf. In the event of an infringement of this obligation by a purchaser, the High Authority may restrict or, should the infringement be repeated, temporarily prohibit dealings with that purchaser by Communit undertakings. If this is done, the purchaser shall have the right, without prejudice to Article 33, to bring an action before the Court. (Article 63 contd., page 2) 3. In addition, the High Authority is empowered to make to the Member States concerned any appropriate recommendations to ensure that the rules laid down for the application of Article 60(1) are duly observed by all distributive undertakings and agencies in the coal and steel sectors. \‘- Article 64 The High Authority may impose upon under takings which infringe the provisions of this Chapter or decisions taken thereunder fines not exceeding twice the value of the sales effected in disregard thereof. If the infringement is repeated, this maximum shall be doubled. “V CHAPTER VI - AGREEMENTS AND CONCENTRATIONS Article 65 1. All agreements between undertakings, decisions by associations of undertakings and concerted practices tending directly or indirectly to prevent, restrict or distort normal competition within the common market shall be prohihited, and in particular those tending: (a) to fix or determine prices; (b) to restrict or control production, technical development or investment; (c) to share markets, products, customers or sources of supply. 2. However, the High Authority shall authorise specialisation agreerrQnts or joint-buying or joint-selling agreements in respect of particular products, if it finds that: (a) such specialisation or such joint buying or selling will make for a substantial improve ment in the production or distribution of those products; (b) the agreement in question is essential in order to achieve these results and is not more restrictive than is necessary for that purpose; and (Article 65 contd., page 2) (c) the agreement is not liable to give the undertakings concerned the power to determine the prices, or to control or restrict the production or marketing, of a substantial part of the products in question within the common market, or to shield them against effective competition from other under takings within the common market. If the High Authority finds that certain agreements are strictly analogous in n and effect to those referred to above, having particular regard to the fact that this paragraph applies to distributive undertakings, it shall authorise them also when satisfied that they meet the same requirements. Authorisations may be granted subject to specified conditions and for limited periods. In such cases the High Authority shall renew an authorisation once or several times if it finds that the requirements of sub- paragraphs (a) to (c) are still met at the time of renewal. The High Authority shall revoke or amend an authorisation if it finds that as a result of a change in circumstances the agreement no longer meets requirements, or that the actual results of the agreement or of the application thereof are contrary to the require rnents for its authorisation. (Article 65 contd., page 3) Decisions granting, renewing, amending, refusing or revoking an authorisation shall be published together with the reasons theref or; the restrictions imposed by the second paragraph of Article 47 shall not apply thereto. 3. The High Authority may, as provided in Article 47, obtain any information needed for the application of this Article, either by making a special request to the parties concerned or by means of regulations stating the kinds of agreement, decision or practice which must be communicated to it. 4. Any agreement or decision prohibited by paragraph 1 of this Article shall be automatically void and may not be relied upon before any court or tribunal in the Member States. The High Authority shall have sole jurisdiction, subject to the right to bring actions before the Court, to rule whether any such agreement or decision is compatible with this Article. 5. On any undertaking which has entered into an agree ment which is automatically void, or has enforced or attempted to enforce, by arbitration, penalty, boyc9tt \ \.. or any other means, an agreement or decision which is automatically void or an agreement for which authorisation has been refused or revoked, or has obtained an (Article 65 contd., page 4) authorisation by means of information which it knew to be false or misleading, or has engaged in practices prohibited by paragraph 1 of this Article, the High Authority may impose Lines or periodic penalty payments not exceeding twice the turnover on the products which were the subject of the, agreement, decision or practice prohibited by this Article; if, however, the purpose of the agreement, decision or practice is to restrict production, technical develop ment or investment, this maximum may be raised to 10 per cent of the annual turnover of the undertakings in question in the case of fines, and 20 per cent of the daily turnover in the case of periodic penalty pay ments. Article 66 1. Any transaction shall require the prior authorisation of the High Authority, subject to the provisions of paragraph 3 of this Article, if it has in itself the direct or indirect effect of bringing about within the territories referred to in the first paragraph of Article 79, as a result of action by any person or undertaking or group of persons or undertakings, a concentration between undertakings at least one of which is covered by Article 80, whether the transaction concerns a single product or a number of different pro&ucts, and whether it is effected by merger, acquisition of shares or parts of the undertaking or assets, loan, contract or any other means of control. For the purpose of applying these provisions, the High Authority shall, by regulations made after consulting the Council., define what constitutes control of an undertaking. 2. The High Authority shall grant the authorisat ion referred to in the preceding paragraph if it finds that the proposed transaction will not give to the persons or undertakings concerned the power, in respect of the product or products within its jurisdiction: (Article 66 contd., page 2) - to determine prices, to control or restrict production or distribution or to hinder effective competition in a substantial part of the market for those products; or - to evade the rules of competition instituted under this Treaty, in particular by establish ing an artifically privileged position involving a substantial advantage in access to supplies or markets. In assessing whether this is so, the High Authority shall, in accordance with the principle of non-discrimina tion laid down in Article 4(b), take account of the size of like undertakings in the Community, to the extent it considers justified in order to avoid or correct disadvantages resulting from unequal competitive conditions. The High Authority may make its authorisation subject to any conditions which it considers appropriate for the purposes of this paragraph. Before ruling on a transaction concerning undertakings at least one of which is not subject to Article 80, the High Authority shall obtain the comments of the Governments concerned. (Article 66 contd., page 3) 3. The High Authority shall exempt from the requirement of prior authorisation such classes of transactions as it finds should, in view of the size of theassets or undertakings concerned, taken in conjunction with the kind of concentration to be effected, be deemed to meet the requirements of paragraph 2. Regulations made to this effect, with the assent of the Council, shall also lay down the conditions governing such exemption. 4. Without prejudice to the application of Article 47 to undertakings—within its jurisdiction, the High Authority may, either by regulations made after consultation with the Council stating the kind of transaction to be communicated to it or by a special request under these regulations to the parties concerned, obtain from the natural or legal persons who have acquired or regrouped or are intend ing to acquire or regroup the rights or assets in question any information needed for the application of this Article concerning transactions liable to produce the effect referred to in paragraph 1. 5. If a concentration should occur which the High Authority finds has been effected contrary to the provisions of paragraph 1 but which nevertheless ‘ “ (Article 66 contd., page 4) meets the requirements of paragraph 2, the High Authority shall make its’ approval of that concentra tion subject to payment by the persons who have acquired or regrouped the rights or assets in question of the fine provided for in the second sub paragraph of paragraph 6; the amount of the fine shall not be less than half of the maximum determined in that subparagraph should it be clear that authorisa tion ought to have been applied for. If the fine is not paid, the High Authority shall take the steps hereinafter provided for in respect of concentrations found to be unlawful. If a concentration should occur which the High Authority finds cannot fulfil the general or specific conditions to which an authorisation under paragraph 2 would be subject, the High Authority shall, by means of a reasoned decision, declare the concentration unlawful and, after giving the parties concerned the opportunity to submit their comments, shall order separation of the undertakings or assets improperly concentrated or cessation of joint control, and any other measures which it considers appropriate to return the undertakings or assets in question to independent operation and restore normal conditions of competition. Any person directly concerned may institute proceedings against such decisions, as provided in Article 33. By way of derogation from (Article 66 corttd., page 5) Article 33, the Court shall have unlimited jurisdiction to assess whether the transaction effected is a concentration within the meaning of paragraph 1 and of regulations made in application thereof. The institution of proceedings shall have suspensory ef feet. Proceedings may not be instituted until the measures provided for above have been ordered, unless the High Authority |
